Social media not a success factor for SMEs

Thumbs down: A study shows that SMEs have not yet understood how to use social media successfully.The use of social networks is now an established marketing measure among large companies. Small and medium-sized enterprises (SMEs) are also increasingly getting in on the act. Although this group of companies in particular has recently been increasingly praised as an ideal marketing tool, SMEs have not yet succeeded in successfully using the communication channels on the Internet.More than 400 decision makers surveyedThis is shown by a recent study conducted in cooperation with the Vienna University of Economics and Business study conducted by the University of Liechtenstein about marketing in social media. Under the leadership of project managers Professor Dr. Dr. Sascha Kraus (Vaduz) and Dr. Isabella Hatak (Vienna), more than 400 decision-makers from companies of all sizes and industries throughout the German-speaking world were surveyed.Facebook and Xing most popularTwo-thirds of the companies that took part in the study use social networks such as Facebook, Xing, Linkedin or Twitter to market their brand, products and services. The vast majority of the companies surveyed are also convinced that they can launch new products and services on the market more quickly via social networks than with traditional marketing measures.Doubts and deficitsLarge companies are clearly the more active network users. In the case of SMEs, on the other hand, greater involvement usually fails due to the cost factor of time. At the same time, decision-makers in SMEs doubt the benefits of such a marketing measure. Often, their doubts are based on fear of possible damage to their image that could result from incorrect use.Facebook and Xing in demandAs the study further shows, in the ranking of the most popular social networks for marketing campaigns, Facebook is at the top with 77 percent, ahead of Xing with 69 percent. Above all, companies that primarily target private consumers with their products rely mainly on Facebook. Xing is primarily used by companies that sell their products to corporate customers. But Twitter, Google+ and LinkedIn are also doing well.

While Facebook is used especially in the B2C area, Xing scores in the B2B area.Evaluation and control PoorWhen it comes to the concrete evaluation and monitoring of the use of social media, the majority of the companies surveyed have deficits. Only one third carry out a quantitative evaluation of network use, checking clicks, friend requests or the number of user comments. The remaining two thirds do not have any measurement system for success and usually do not know any. A qualitative, i.e., content-based review of activity in social networks takes place practically nowhere. The researchers at the University of Liechtenstein point out that this is a missed opportunity to improve their own activities.Potential for improvementFor business research, the question arises as to the effective benefit of marketing on social networks. Social media presence is touted as a "panacea" for SMEs in particular, as it is practically free, appropriate to the target group and can be managed without much effort.As the researchers note, however, this does not yet correspond to reality at all. The use of social media has so far only paid off for large companies, and specifically for those that use social media proactively, innovatively and with a willingness to take risks, i.e. "entrepreneurially".No impact on business successIn the case of SMEs, on the other hand, no effects on corporate success were found. According to one of the authors' conclusions, this could be due to poorer general conditions, too few human resources for social media marketing and too little knowledge of the subject matter among those responsible for marketing.For social networks to become a successful marketing tool for SMEs as well, the general conditions would first have to be improved. What is needed is a positive basic attitude on the part of the entrepreneur, effective allocation of resources and a suitable social media manager who has sufficient free capacity and appropriate experience with the new media.Entrepreneurial will neededAbove all, however, it takes the will to act entrepreneurially and to create one's own markets with foresight, according to the authors of the most comprehensive scientific study on the subject in the German-speaking world to date.The evaluation of the study "Social Media Marketing" as a PDF